Texmaco Rail and Engineering today said it will acquire a majority stake in Mumbai-based railway electrification firm Bright Power Products (India) Pvt Ltd for Rs 100 crore.
The acquisition, proposed to be funded through internal accruals, will help the Adventz Group firm help position itself as a total railway solutions provider, it said in a regulatory filing.
Texmaco had recently raised Rs 300 crore through the Qualified Institutional Placement (QIP) route, it added.
The acquisition is expected to be completed over 2-3 months, subject to approvals and due diligence. Definitive documentation is expected to be executed between the two firms within the next 45 days, it said.
ICICI Securities acted as the financial advisor and Shardul Amarchand Mangaldas & Co. Acted as the legal advisor.
Bright Power had a turnover of Rs 80 crore in 2014-15 fiscal and a healthy orderbook of Rs 200 crore as on April 1, 2015.
Recently, it won two major tenders aggregating to Rs 170 crore.
Currently, 39.9 per cent of the rail network has been electrified with 12th Five Year Plan of electrifying 6,500 km.
The current annual run rate of railway electrification is 1,300-1,400 km.
Texmaco shares today rose 0.86 per cent to settle at Rs 105.45 apiece on the BSE.
